Chemring sales boosted by GD detection purchase


British military equipment maker Chemring said sales rose a third in the three months to August, helped by the recent acquisition of U.S. defence firm General Dynamics’ detection systems operations.

The company, which makes ejector seats and pyrotechnic decoys for military aircraft, yesterday said trading had remained strong in the three months to the end of July, with revenue in the period rising a third to 164 million pounds ($269 million), boosted by especially strong growth at its counter-IED and munitions divisions.

In April Chemring agreed to buy General Dynamics’ detection unit — a business that supplies the U.S. military with devices for detecting chemical and biological threats — for $90 million.
“The board is extremely pleased with the positive contribution that this newly acquired business is making to the group,” Chemring said in a statement. “The group’s order book is currently 996 million pounds, which is 43 percent higher than at this time last year … and, accordingly, the board continues to believe that the prospects for the Group for the 2012 financial year are good.”

Shares in Chemring, which have fallen a fifth in the last three months, closed at 518 pence on Friday, valuing the group at around 1 billion pounds.